URI Revenue Jumps 16% in 2019

Jan. 30, 2020

United Rental reported 2019 revenue of $9.35 billion, up 16 percent over 2018, with rental revenue accounting for $7.96 billion. The company said the increase in rental revenue was due primarily to its acquisition of BakerCorp and BlueLine, and said was 4.1 percent on a pro forma basis.

Fleet productivity for the year fell 2.2 percent compared to 2018, but on a pro forma basis, rose 0.6 percent. The company said the “combined benefit of rental rates and mix was partially offset by lower time utilization.”

Rental revenue for the company’s general rentals segment increased 11.7 percent over 2018, which was 1.8 percent higher than the previous year on a pro forma basis. Rental gross margin decreased by 250 basis points to 38.8 percent. The company cited the impact of acquisitions, “notably higher depreciation of rental equipment from the acquisition of BlueLine,” and higher operating costs, primarily higher repair and maintenance expenses.

Used equipment sales generated $831 million at a GAAP gross margin of 37.7 percent and an adjusted gross margin of 46.7 percent. In 2018, sales of $664 million generated margins of 37.7 percent (GAAP) and 51.8 percent (adjusted).

Net income for the year increased 7.1 percent to $1.17 billion. Operating income increased 10.3 percent over 2018 to $2.15 billion. On a pro forma basis, net income excluding merger costs recognized by BakerCorp and BlueLine prior to acquisition increased 8.7 percent over 2018.